OT: The Energey Cap

[tim...]

Am I the only person who find this reporting of energy bills as an average number a complete useless way of doing it?

Very few will be the average user, some will be bigger/smaller households, some will have less efficient insulation and many will not be duel fuel or paying by DD. And I (living in a very well insulated house am nowhere near it)

So in order to see how this cap might affect me, I need the figures for the individual components of the bill, but where are they?

I have been to the Ofgem website and the document there that's supposed to detail this is impenetrable

anyone any idea where this information is?

tim

[Andy Burns]

The Act itself doesn't seem to say how it must be determined

[Fredxx]

I believe it is all hot air. At the end of the day there is a market, albeit with stiction. Many other markets such as bank deposit interest rates, insurance premiums and the like have the same policy.

The issue is when the supply prices continue such the energy suppliers make a loss. I'm left wondering what happens when they all go into administration? How will the capped price be determined?

[tim...]

no

the act just gives Ofgem the rights to impose one

which appears to be here

but the £1136 is meaningless, my bill's already half that even on the most costly tariff (and I bet that there are people living in un-insulated 4 bed houses paying 2-3 grand, who on the basis of this announcement might be expecting, wrongly, that they are going to be capped at 1136)

tim

[Andy Burns]

I have no plan to examine the numerous appendices and annexes at the bottom of this page ...

[Robin]

If you want the detail go to

where you'll find

"2.74. We propose that the default tariff cap varies with customers? consumption. We would provide an implied maximum standing charge and maximum variable charge (Table 8).

Table 8: Maximum standing charge and unit rate for 2017 baseline

[the table doesn't copy well from the pdf and I cba'd to fettle it]

2.75. To ensure the default tariff cap varies with consumption, we propose to set the cap at typical consumption (as described above) and at nil (zero) consumption. The cap for all other consumption levels is defined by a straight line between the cap at nil consumption and the cap at typical consumption."

Note though that those are 2017 baseline figures which AIUI fall to be increased for the 2019 rates.

But note that for all this cap stuff "AIUI" is "Homer Simpson benchmark".

[tim...]

I wasn't suggesting that you should :-)

[tim...]

I've been there

it contains links to 23 individual documents

I read the first one (which was the impenetrable document referred to above)

In which of the 23 links did you find this?

Thanks

tim

[Brian Gaff]

I think you hit the nail squarely, its a nonsense and just sounds like somebody is doing something positive. I'm sure one size cannot fit all for all the reasons you quote and others. Brian

[Max Demian]

Do you have to apply for it, or is it something you get automatically if you are on a Standard Variable tariff? Is it expressed in terms of standing charge and unit rate, or something more complicated?

[Robin]

In the consultation document (Default tariff cap - Overview document). All the Appendices, Annexes etc are clearly labelled as "Subsidiary documents" and would naturally have demanded more than a reference to paras.

I can only suggest you look again at the document you read.

[Andy Burns]

Robin quoted:

So ignoring E7 for now

Elec Gas standing charge 21.3p/day 24.0p/day unit rate 14.5/kWh 3.2p/kWh

I presume they'll want to crank those up a bit to account for the general direction of prices in the last couple of years, so I think it's safe to say that anyone who has switched recently is unlikely to benefit from the cap.

But it gives the suppliers a target to increase all tariffs to by 2023 :-(

[tim...]

OK my mistake

Sorry.

But it still isn't definitive, that table referrers to 2017 baseline and the numbers there are way below anything that anyone currently charges, even on "best" accounts.

So how do we get to 2019 figures (which will be the date by the time it is implemented)

tim

[tim...]

even my "best" offer from my current supplier, which is the one that they use to entice people to them is: gas 26p pd and 4.2p per unit, electric 26p pd and 15.75 per yunit.

where are the deals that substantially beat this?

tim

[Andy Burns]

I changed to UtilityPoint at end of July

standing charge 11.02p/day per fuel gas=3.03p/unit, elec=12.11p/unit

MSE energy club seems to be the least hassle comparison

[Robin]

So? The document makes very clear it is consultation on the

*methodology*. Giving figures based on 2017 allows them to do so with real data. And for you to compare the results using that data with tariffs in 2017.

You wait. The document tells you how long you can expect to wait. And you may find it helpful to know that's in the section headed "Timetable"

[tim...]

today's deal:

Unit Rate elec 13.5303p per kWh gas 3.4797p per kWh Standing Charge 15.00p per day 15.00p per day

fixed rate until September 2019, with 30 pound exit fee. Works for my new house, doesn't work for the one I shall be moving from

metre read monthly

really, they come to read my meter monthly? I don't believe them

tim

[Andy Burns]

Yes, I'm aware the deal I got is no longer available

No, they send an email reminding you to read them

[tim...]

which I can't do because it's in a cupboard for which i don't have the key

asking the warden to read it for me every six months is probably acceptable

asking him to do it monthly is TTP

tim

[Dave Liquorice]

You woz dun. Same per day but lecky at 11.93p/kWHr (inc VAT). Switched two accounts one in May and one in June.

But the bare unit price and standing charge are not enough to tell you which is the best deal you must combine it with your useage. A tarrif with low (or zero) standing charge but hefty per unit costs can be economic if your use is low. Conversly high standing charge and low per unit cost might be better for high use. The only real way to find out is to know your useage and do the maths.